Relating to the calculation of certain ad valorem tax rates of a taxing unit and the manner in which a proposed ad valorem tax rate that exceeds the voter-approval tax rate is approved; making conforming changes.
Impact
If enacted, HB 17 would revise significant sections of the Tax Code affecting the calculation of the no-new-revenue and voter-approval tax rates. The bill repeals several existing provisions that impose limitations on tax rate adjustments, thereby granting local taxing units greater flexibility in managing their tax rates. This change is expected to have a substantial impact on local governments, potentially leading to changes in funding for public projects and services based on how tax rates are adjusted and approved. Importantly, the bill stipulates that provisions only apply to ad valorem taxes imposed for tax years starting after the bill's effective date, which resonates with many local governments anticipating financial planning adjustments.
Summary
House Bill 17 aims to modify how certain ad valorem tax rates are calculated for taxing units in Texas. Specifically, it addresses the method for determining voter-approval tax rates and introduces conforming changes to current statutes to ensure consistency across various tax code provisions. The primary objective of this bill is to facilitate a better understanding of tax implications for property owners while ensuring that funds required for essential services can be collected effectively. By allowing adjustments to tax calculations, the bill seeks to manage tax burdens without overly complicating the approval process for higher tax rates.
Sentiment
The sentiment surrounding HB 17 appears generally supportive among legislators who believe that simplifying the tax rate approval process will lead to more straightforward revenue generation for local units. Proponents argue that the changes could help strengthen fiscal stability by enabling taxing units to respond more adequately to fluctuating funding needs. However, concerns have been raised regarding the potential for increased tax rates without sufficient voter oversight, particularly from critics who argue that loosening controls on voter approval might lead to less accountability and transparency in local governance.
Contention
Notable points of contention arise primarily from the debate over local autonomy versus state oversight in tax regulation. Critics of the bill contend that it compromises the rights of voters by diminishing their control over local tax increases. They emphasize that allowing easier paths to raise tax rates could lead some taxing units to exploit these provisions at the expense of local taxpayers. Additionally, opponents highlight the need for maintaining robust public engagement in civic decisions relating to taxation and argue that the measure may erode the participatory aspects essential in tax governance. The balance of encouraging revenue growth while protecting voting rights continues to be a focal point of the discussions surrounding HB 17.
Texas Constitutional Statutes Affected
Tax Code
Chapter 26. Assessment
Section: New Section
Section: 075
Chapter 33. Delinquency
Section: New Section
Water Code
Chapter 49. Provisions Applicable To All Districts
Section: 23601
Section: 236
Section: 107
Section: 108
Section: 23602
Section: 23603
Education Code
Chapter 45. School District Funds
Section: 0032
Local Government Code
Chapter 120. Election For Reduction Of Funding Or Resources For Certain Primary Law Enforcement Agencies
Section: 007
Special District Local Laws Code
Chapter 3828. Lake View Management And Development Districtin Henderson County
Section: 157
Chapter 8876. Reeves County Groundwater Conservation District
Relating to the calculation of certain ad valorem tax rates of a taxing unit and the manner in which a proposed ad valorem tax rate that exceeds the voter-approval tax rate is approved; making conforming changes.
Relating to the vote required in an election to approve an ad valorem tax rate that exceeds a taxing unit's voter-approval tax rate; making conforming changes.
Relating to the calculation of the voter-approval tax rate of certain counties and the procedure for the adoption by such a county of a tax rate that exceeds that rate; making conforming changes.
Relating to the effect of an election at which the voters fail to approve or vote to reduce the ad valorem tax rate adopted by the governing body of a taxing unit.
Relating to the establishment of a limitation on the total amount of ad valorem taxes that a county may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.
Relating to the establishment of a limitation on the total amount of ad valorem taxes that a county may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.
Relating to the authority of a hospital district to establish an ad valorem tax freeze on the residence homesteads of disabled or elderly persons and their surviving spouses.
Relating to the establishment of a limitation on the total amount of ad valorem taxes that certain taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.
Relating to the establishment of a limitation on the total amount of ad valorem taxes that certain taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.
Relating to the establishment of a limitation on the total amount of ad valorem taxes that certain taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.
Relating to the authority of a taxing unit other than a school district to establish a limitation on the amount of ad valorem taxes that the taxing unit may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.